Shopping Online With A Smartphone Might Not Be That Smart

By Tom Mustin

DENVER (CBS4) - About 122 million people were expected to shop online for Cyber Monday. Retailers were expected to rack up $3 billion in sales. Some experts say technology is helping drive the increase in online sales.

That includes apps for smartphones. Cyber security experts warn that smartphone shoppers could be at risk because of dangerous, counterfeit apps.

Betsy Peterson does most her holiday shopping online.

"I do quite a bit of holiday shopping. You can't beat the free two-day shipping," she told CBS4's Tom Mustin

Peterson didn't realize that bogus apps on her smartphone could put her identity at risk.

"I have got free apps in the past, but I don't know if my information has been taken from those," she said.

With the holiday shopping season in full swing, online predators are stealing more secrets than Victoria.

"It's a very dangerous game you're playing," said Ray Hutchins, the owner of Denver Cyber Security.

Hutchins says hundreds of free apps, even those that appear to be from reputable companies, can be fronts for cyber-villains.

"They're getting, by virtue of giving you this app, which you think is free and fun, and useful, you're giving them permission to all the data on your phone," Hutchins said.

That information includes passwords, contacts, and phone numbers. The crooks could be overseas or next door.

"We're dealing with a billion-man opportunistic army that is working hard to take what we have," Hutchins said.

Hutchins said the Apple Store and Google Play try to vet the impostors, but are fighting a losing battle.

So what can you do?

Hutchins advises shoppers to only install apps they pay for, or if not, make sure the apps come from a company directly.

"Go straight to Macy's, go straight to Dillard's. Download the app straight from them, " said Hutchins.

And with several weeks of cyber shopping to go, Peterson is hoping online bandits won't spoil her holiday cheer.

"It kind of makes me nervous."

Other red flags for bogus apps include spelling and grammar mistakes and a request for credit card or Social Security numbers. Hutchins says the bottom line is -- you get what you pay for. Free apps may end up costing you a bundle in the long run.

Tom Mustin is CBS4's Weekend Anchor. He has been with CBS4 since 2002, and is always looking for great story ideas. Connect with Tom on Facebook or follow him on Twitter @TomCBS4.